The SEC may remove the 19b-4 rule-change step, cutting ETF approval time from months to just 75 days using S-1 filings only.
The proposed framework would simplify ETF launches, potentially aiding issuers of mature digital assets with strong liquidity and market volume.
SEC and exchanges are creating token eligibility standards, possibly favoring projects that meet specific financial and trading thresholds.
The US Securities and Exchange Commission is developing a new framework that could shorten the timeline for launching token-based exchange-traded funds. The plan may allow issuers to bypass the current dual-track approval system, removing the need for the lengthy 19b-4 rule-change process.
Under the proposed pathway, ETF issuers would file only an S-1 registration statement. If accepted, the ETF could list after 75 days. This change could significantly reduce the time it takes to bring a crypto ETF to market. The current method often extends over six months due to multiple review stages.
S-1 filing to take central role in approval
The SEC’s traditional review includes two 45-day periods under Rule 19b-4, which adds 90 days. Combined with the S-1 process, issuers usually wait far longer. The new framework shifts focus entirely to the S-1 filing, simplifying the launch process while keeping disclosure requirements in place.
https://twitter.com/EleanorTerrett/status/1940066780367442267
The agency is reportedly working with exchanges to define listing standards that tokens must meet. While full details are not public, criteria may include market capitalization, trading volume, and liquidity benchmarks. These requirements would determine eligibility for the new 75-day approval track.
Faster approval could benefit established tokens
The proposal may favor tokens already listed on major exchanges with a strong market presence. A streamlined pathway could especially benefit firms with solid infrastructure and investor demand, including those whose ETF applications face delays under current rules.
This approach aims to provide greater consistency and predictability for ETF issuers. The lack of transparency in past crypto ETF reviews has been a longstanding concern for market participants. A fixed review period may help reduce uncertainty.
While the new framework is still under consideration, it signals a potential shift in how the SEC views crypto-linked financial products. The agency has not confirmed when the policy may be finalized or implemented. A spokesperson declined to offer additional information.
The post SEC Proposes Streamlined 75-Day Process for Token-Based ETF Listings appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.